Brookdale Senior Living (NYSE:BKD) executives highlighted improving occupancy, a fourth straight year of double-digit Adjusted EBITDA growth, and an outlook for faster revenue per available room (RevPAR) gains in 2026 during the company’s fourth-quarter 2025 earnings call.
Management said results and guidance were consistent with preliminary highlights issued ahead of its Investor Day in late January. Chief Executive Officer Nick Stengle and Chief Financial Officer Dawn Kussow emphasized operating initiatives, portfolio streamlining, and reinvestment in communities as key drivers of performance and the company’s multi-year outlook.
Occupancy rises to highest level since early 2020
Kussow said Brookdale has now reported three consecutive quarters with consolidated weighted average occupancy above 80%. For full-year 2025, consolidated weighted average occupancy was 80.9%, while same-community weighted average occupancy was 82.3%.
Management reiterated that occupancy around 80% marks an inflection point in Brookdale’s model due to fixed-cost leverage. Stengle also provided updates on communities by occupancy “bands,” noting that communities below 70% occupancy declined from 23% of the portfolio in the first quarter of 2025 to 15% in the fourth quarter. Communities above 90% occupancy increased from 25% to 34% over the same period.
Stengle said that of the 80 communities below 70% occupancy in the fourth quarter, 14 are expected to be sold in the first half of 2026 and 21 are working with internal “SWAT” teams focused on operational and commercial improvements.
2025 financial results: RevPAR at top end, Adjusted EBITDA up 19%
Brookdale finished 2025 at the top end of its original annual RevPAR guidance, reporting 5.7% consolidated RevPAR growth. Adjusted EBITDA for the year totaled $458 million, exceeding the company’s initial guidance range and landing above the midpoint of its final, increased range of $455 million to $460 million, management said.
For the fourth quarter, Adjusted EBITDA was $106 million, up $7 million, or 7%, from the prior-year quarter.
Resident fees for full-year 2025 increased 2.4% to $3.0 billion, which Kussow said reflected the 5.7% RevPAR increase partially offset by a 3.2% decline in total average available units due to portfolio optimization. Fourth-quarter resident fees were $715 million, down 4% year-over-year, driven by a 10.5% reduction in total average units, partially offset by a 7.1% RevPAR increase.
Kussow said fourth-quarter expense per occupied unit (ExPOR) rose 2.6% year-over-year, while revenue per occupied room (RevPOR) rose 3.1%, resulting in a 50 basis point positive spread. For full-year 2025, RevPOR improved 2.7% and ExPOR increased 1.8%, producing a 90 basis point positive spread.
Cash flow, liquidity, and leverage
Brookdale generated $23 million of adjusted free cash flow in 2025, short of its $30 million to $50 million target. Stengle and Kussow attributed the shortfall primarily to working capital timing and refinancing-related interest prepayments, while noting it was the company’s first positive adjusted free cash flow year since 2020. Fourth-quarter adjusted free cash flow was an outflow of $23 million, which Kussow said typically reflects seasonal working capital needs, including real estate tax payments.
As of Dec. 31, 2025, total liquidity was $378 million, up $26 million sequentially. Adjusted annualized leverage improved to 8.9x trailing twelve-month Adjusted EBITDA, compared with 9.9x at the end of the prior year. Stengle reiterated a target of getting leverage under 6x by the end of 2028, primarily through EBITDA expansion, and noted that about 90% of total debt is non-recourse, secured by property-level mortgages.
Kussow said the company refinanced all remaining 2026 mortgage maturities and a portion of 2027 maturities in January, extending near-term maturities and supporting a “well-staggered” maturity schedule.
Portfolio changes, CapEx plans, and operating structure
Management outlined continued portfolio streamlining. At year-end 2025, Brookdale’s consolidated portfolio had 548 communities (370 owned and 178 leased), reflecting a reduction of two owned and 43 leased communities since the end of the third quarter. Stengle said the decline in leases reflected the completion of the previously disclosed Ventas master lease reset, with Brookdale continuing to lease 65 Ventas communities going forward.
During 2025, the company exited 58 communities through lease terminations, including the termination of leases for 55 Ventas communities, Kussow said. Brookdale will continue to manage eight of the non-renewed communities. The revised Ventas lease structure includes a landlord-funded capital improvement allowance and a 3% annual rent escalator, management said.
Brookdale sold 12 owned communities in 2025 for $26.1 million of proceeds net of transaction costs. For 2026, the company expects to sell the remaining 29 previously announced owned communities (2,364 units), with the bulk expected by mid-year and estimated proceeds of approximately $200 million.
On capital investment, Stengle said 2025 non-development capital expenditures totaled $170.7 million, and the company projects $175 million to $195 million in 2026. Management discussed a shift toward larger “First Impressions” projects and a more targeted, “asset management” approach to prioritizing investments intended to improve community-level NOI.
Operationally, Stengle highlighted leadership and organizational changes, including the hiring of Chief Operating Officer Mary Sue Patchett—Brookdale’s first COO in more than a decade—and the implementation of a new regional operating structure with six regions. He also said the company created a new Senior Vice President of Strategic Operations role to consolidate pricing strategy, labor management, and capital investment decision-making under operations.
2026 outlook: higher RevPAR growth and mid-teen EBITDA growth
For 2026, Brookdale guided to 8% to 9% RevPAR growth and $502 million to $516 million of Adjusted EBITDA, which management said implies mid-teen growth from a $445 million baseline level. Kussow said drivers include higher in-place rate increases effective Jan. 1, expected occupancy gains supported by move-in demand, and an accretive impact from dispositions. She also cited expectations for a “stable and predictable” labor cost environment, with labor representing approximately 65% of facility operating expenses.
Additional 2026 assumptions discussed included general and administrative expense (excluding stock-based compensation and certain other costs) of approximately $162 million, and cash facility operating lease payments of approximately $180 million.
Management also pointed to long-term demographic tailwinds, noting 2026 is when the first baby boomers reach age 80—an age range that accounts for more than half of Brookdale move-ins—with an average move-in age of about 83. Stengle said demographic reports show the 80-plus population growing at a 4%+ compounded annual rate for the next decade, while senior housing supply growth at the end of 2025 was about 0.6%.
On Brookdale HealthPlus, Stengle said the platform was rolled out to 58 additional communities across eight states in 2025, including three new states, bringing the total to more than 180 communities served. He said the program helps reduce avoidable emergency room visits and hospitalizations and has supported resident retention and associate turnover improvements in participating communities.
About Brookdale Senior Living (NYSE:BKD)
Brookdale Senior Living Inc (NYSE: BKD) is one of the nation’s largest operators of senior living communities, offering a full spectrum of living options that includes independent living, assisted living, memory care, continuing care retirement communities, respite care and skilled nursing services. The company emphasizes programs and amenities that support wellness, social engagement and overall quality of life for older adults.
Across the United States and Puerto Rico, Brookdale manages more than 700 communities serving tens of thousands of residents.
